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February 7, 1999

GATEWAY TO EXPAND PLANT, HIRE 1,000

By CBR Staff Writer

In response to growing demand for its PCs, Gateway Inc says it will expand it manufacturing operation in Hampton, Virginia and hire 1,000 new workers beginning this summer. The company will also build a 55-acre vendor campus adjacent to the plant which will enable its top vendors and suppliers to be near the manufacturing plant. Current plans call for the development of a 250,000 square-foot facility, scheduled for completion this summer. The company says it will encourage vendors and suppliers to maintain a presence on the campus, which will help to streamline its manufacturing process. Part of the new facility will also be used to house its warehousing, parts fulfillment and other functions that will be relocated from its current facility. The Hampton site has been manufacturing Gateway machines since June 1996 and currently employs 2,100. Last week, Gateway reported that fourth-quarter net income rose 39% to $129.1m on revenue up 16.6% at $2.31bn. Unit sales were up 35% year-over- year at 1.2 million.

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